Czech Republic – practical logistics consultant

Country profiles overview

Market overview

The Czech Republic has a stable and flourishing market economy. Its proximity to Austria and Germany primarily benefits trade and the labour market. Compared to the gross domestic product (GDP) of the EU, the Czech Republic is steadily moving towards the EU-28 average. Accordingly, GDP per capita has continuously risen since the Czech Republic became an EU member state in 2004. Traditionally, the country’s economy has been considered among the most highly developed in Europe. Alongside the aircraft industry, for example, the car industry has played a central role since the Second World War.

Economic indicators

The unemployment rate in December 2015 was 4.5% (Eurostat), which was the second lowest in the EU.

At 1.4% of GDP, the 2015 budget deficit was once again below the Maastricht threshold of 3% of GDP.

According to the Czech Ministry of Finance, the national debt in 2015 amounted to 41% of GDP.

(Source: German Foreign Ministry)

Linde has also profited from the complete opening of the German labour market to the countries of Eastern Europe in 2011. The number of orders in the industrial truck sector speaks for itself and proves that the Czech Republic is one of the upcoming countries in Europe: a total of 7,677 industrial trucks were sold in 2015. The best-selling machines were in the warehouse equipment sector, which accounted for 59% of sales – alongside e-trucks at 22% and IC-trucks at 19%. Also remarkable is the fact that the number of e-trucks supplied by Linde Czech Republic has more than doubled in the last five years, which puts the country in the leading position Europe-wide.

Reliable partner

The Sales department at Linde Czech Republic is based in Prague and operates three regional offices. Alongside the automotive and logistics industries, trade plays a central role and recorded the highest anticipated growth of 36% by 2015. Warehouse logistics is crucial to customers in this industry – especially in the highly dynamic e-commerce sector: Linde pedestrian stackers, reach trucks, e-forklifts and high-rack trucks enable complex warehouse solutions and make Internet traders fast and flexible.

The automotive industry is also an important market for Linde Czech Republic. Here, too, Linde is considered a reliable partner. The companies of this sector benefits above all from vehicles equipped with lithium-ion technology, which offer not only longer operating times and battery life, but also a higher energy density. Another major trend in the car industry is increased use of logistics trains for assembly lines. In this area, for example, Linde Czech Republic offers the Logistic Train for indoor use as well as the Factory Train, which can also be deployed outdoors.

In the Czech Republic, as elsewhere, recent years have seen rapid development not only in warehouse logistics, but also in third party logistics providers. Against this background, logistics companies are dependent on reliable partners for efficient vehicle supplies and delivery logistics. The demand for increased efficiency and fuel savings in industrial trucks has also risen. Linde Czech Republic has responded to these developments with compressed natural gas (CNG) technology, with which it is also pursuing the national action plan for clean mobility. Important customers include large retail chains and mail-order companies.

One customer example

An important customer of Linde Czech Republic is the online mail-order company Mall.cz, one of the country’s largest e-commerce businesses. In 2008, Linde Czech Republic was tasked with kitting the customer’s distribution centre in the Horni Pocernice district of Prague out in line with the very latest standards in logistics. After a joint analysis and conception Linde Czech Republic has developed a complex, tailor-made rack system including materials handling technology. On an area of 30,000 m² in Jirny, a distribution centre has been created that not only complies with all the statutory requirements with regard to health, safety and fire prevention, but also contains one of the most modern warehouse solutions in Central and Eastern Europe. In addition to very narrow aisle trucks (VNA) and a reach truck, state-of-the-art solutions have also been implemented for 12.50-metre-high shelving systems.